Following reports that Apple will temporarily cut production of iPhone 6s models this quarter, Wells Fargo analyst Maynard Um reduced his rating for the company's shares on Wednesday, issuing new guidance of $120 to $130 per share, down from the previous range of $125 to $135. Mr. Um cites the market's concern about Apple's alleged production cut for his "conservative" update on the company's outlook.

While Mr. Um acknowledged that the iPhone could see its first ever year-over-year sales decline during the quarter, he doesn't believe that the iPhone brand or demand has "peaked," noting that iPhones sales growth is typically lower during "S" model update years.

Looking forward, Mr. Um expects any near-term decline in sales to be just a "road bump" before Apple returns to growth later this year. Specifically, he believes that the launch of the iPhone 7 in the December quarter will set a new quarterly record for Apple.

Apple is set to reveal earnings for its first fiscal quarter of 2016 on January 26th, with analysts expecting the company to reveal additional information about the recent production and sales questions that have weighed down Apple shares.

Shares of Apple Inc. (NASDAQ:AAPL) are currently trading down $1.06 (1.03%) at $101.65.